The Complete Guide to Tipping in the US: Calculator, Etiquette & Best Practices

Published on January 11, 2026 by The Kestrel Tools Team • 7 min read

You’re at a restaurant with friends, the bill arrives, and suddenly everyone’s pulling out their phones trying to figure out the math. How much is 20% of $87.43? Should you tip on the pre-tax or post-tax amount? And how do you split it four ways when someone only had a salad?

Tipping in the United States can feel overwhelming, especially if you’re visiting from a country where tipping isn’t customary. But understanding tipping culture isn’t just about math—it’s about recognizing that tips often make up a significant portion of service workers’ income. Let’s break it all down so you can tip confidently every time.

Why Tipping Matters in the US

Unlike many countries where service workers receive a full wage, US federal law allows employers to pay tipped employees as little as $2.13 per hour (as of 2026), with tips expected to make up the difference to minimum wage. This means your tip isn’t just a bonus—it’s often the majority of your server’s income.

The Real Impact of Your Tip

Base hourly wage:        $2.13
Average tips per hour:   $15-25
Total hourly income:     $17-27

A 20% tip on $100 = $20 → directly supports the server
A 10% tip on $100 = $10 → significant pay cut for the same service

Understanding this context helps explain why tipping is taken seriously in American culture.

Standard Tip Percentages: When to Use Each

Restaurant Dining

Pro Tip: In major cities like New York, San Francisco, and Los Angeles, 20% has become the new standard for good service.

Other Services

Food Delivery:           15-20% (minimum $3-5 for small orders)
Rideshare (Uber/Lyft):   15-20% or $2-5 minimum
Hotel Housekeeping:      $2-5 per night
Valet Parking:           $2-5 when retrieving car
Hair Salon/Barber:       15-20% of service cost
Tattoo Artist:           15-25% of tattoo cost
Bartender:               $1-2 per drink or 15-20% of tab
Coffee Shop:             $1 or 15-20% (optional but appreciated)
Moving Company:          $20-50 per mover (or 15-20% total)

The Great Debate: Pre-Tax vs. Post-Tax Tipping

One of the most common questions about tipping is whether to calculate the tip on the pre-tax or post-tax amount.

The Short Answer

Either is acceptable, but here’s what each approach looks like:

Bill Breakdown:
Subtotal (food & drinks):  $80.00
Sales Tax (8.5%):          $6.80
Total:                     $86.80

Pre-Tax 20% Tip:  $80.00 × 0.20 = $16.00
Post-Tax 20% Tip: $86.80 × 0.20 = $17.36

Difference: $1.36

The Etiquette

• Pre-tax tipping is technically “correct” by traditional etiquette standards
• Post-tax tipping is more common and simpler (just calculate on the total)
• Most servers appreciate either—the difference is usually minimal
• When in doubt, tip on the total (post-tax) to be generous

Quick Mental Math Tricks

Don’t want to pull out a calculator every time? Here are some quick mental math tricks:

For 20% (The Easy Standard)

1. Find 10% by moving the decimal point left
2. Double it

Bill: $47.50
Step 1: 10% = $4.75
Step 2: Double it → $4.75 × 2 = $9.50

Your 20% tip: $9.50

For 15%

1. Find 10%
2. Add half of that

Bill: $60.00
Step 1: 10% = $6.00
Step 2: Half of $6 = $3.00
Step 3: $6.00 + $3.00 = $9.00

Your 15% tip: $9.00

For 18%

1. Calculate 20%
2. Subtract 10% of the tip

Bill: $50.00
Step 1: 20% = $10.00
Step 2: 10% of $10 = $1.00
Step 3: $10.00 - $1.00 = $9.00

Your 18% tip: $9.00

Splitting the Bill: Strategies That Work

Group dining is where tipping gets complicated. Here are strategies that actually work:

Option 1: Split Everything Equally

Best when everyone ordered similarly priced items.

Total bill (with tip): $200
Number of people: 4
Each person pays: $200 ÷ 4 = $50

Option 2: Pay for What You Ordered + Shared Tip

Best when orders vary significantly.

Person A ordered: $45
Person B ordered: $25
Person C ordered: $30

Subtotal: $100
Shared 20% tip: $20
Tax (8%): $8

Person A pays: $45 + ($20 × 0.45) + ($8 × 0.45) = $57.60
Person B pays: $25 + ($20 × 0.25) + ($8 × 0.25) = $32.00
Person C pays: $30 + ($20 × 0.30) + ($8 × 0.30) = $38.40

Option 3: Use Venmo/Payment Apps

One person pays, everyone else Venmos their share. This is increasingly the most popular method among younger diners.

Common Tipping Mistakes to Avoid

Mistake #1: Tipping on Discounts Incorrectly

When you have a coupon or discount, tip on the original price, not the discounted amount.

Original bill: $100
50% off coupon: -$50
You pay: $50

❌ Wrong: 20% of $50 = $10
✅ Right: 20% of $100 = $20

Mistake #2: Reducing Tips for Kitchen Issues

Your server doesn’t cook the food. If your steak was overcooked but your server handled it well, tip appropriately for their service.

Mistake #3: Not Tipping on Takeout

Post-pandemic, tipping 10-15% on takeout orders has become more common, especially at restaurants where staff put extra effort into packaging.

Mistake #4: Forgetting to Tip on Drinks

At a bar, the standard is $1-2 per drink or 15-20% of your tab—whichever is higher.

Special Situations

Large Parties (6+ People)

Many restaurants automatically add an 18-20% gratuity for large parties. Check your bill before adding more!

Bad Service vs. Bad Experience

• Bad service (rude, inattentive server): 10-15% tip, consider speaking to a manager
• Bad food/kitchen issues: Full tip for server, feedback to management
• Terrible experience all around: Speak to management, tip at least 10% (servers still did work)

Counter Service/Fast Casual

Tipping at places like Chipotle or coffee shops is optional. A tip of $1-2 or 15-20% is appreciated but not expected.

Cultural Differences: Tipping for Visitors

If you’re visiting the US from a country where tipping isn’t common:

Always Tip:
✓ Restaurant servers (15-20%)
✓ Bartenders ($1-2/drink or 15-20%)
✓ Hotel housekeeping ($2-5/night)
✓ Taxi/rideshare drivers (15-20%)
✓ Food delivery (15-20%)

Usually Tip:
~ Valet parking ($2-5)
~ Hair stylists (15-20%)
~ Spa services (15-20%)

No Tip Expected:
✗ Fast food workers
✗ Retail store employees
✗ Flight attendants
✗ Movie theater staff

Tools and Resources

Calculating tips manually can be tedious, especially when splitting bills or dealing with different tax rates. That’s why we built a simple, fast tip calculator that handles all these scenarios.

Why Use a Dedicated Tip Calculator?

• Pre-tax or post-tax options – Calculate tips your preferred way
• Bill splitting – Divide among any number of people instantly
• Custom percentages – Use preset 15%, 18%, 20%, 25% or enter your own
• Instant results – No ads, no sign-ups, just quick calculations

Try our Tip Calculator for instant, accurate tip calculations. Perfect for dining out, delivery, or any service where tipping is expected.

Related tools you might find useful:

• Percentage Calculator – For other percentage calculations
• Age Calculator – Quick date calculations

Key Takeaways

1. Standard tip is 15-20% – 20% is increasingly expected in major cities
2. Pre-tax or post-tax both work – Post-tax is simpler and more generous
3. Tip on original prices – Even when using coupons or discounts
4. Servers rely on tips – They’re not just a bonus, they’re primary income
5. When in doubt, tip more – An extra dollar or two makes a real difference

Ready to calculate your next tip? Try our free, no-ads tip calculator and never stress about restaurant math again.